Mar 06 2019

Rupee Stays Flat As Importers’ Dollar Bids Offset Gains From Strong Equities

Financial Market Overview

6th March, 2019

Noon update

Indian Rupee:-

  • The Indian rupee stayed flat against the dollar in afternoon trade, as state run banks bought the greenback, likely on behalf of importer offsetting gains by strong local shares and speculation of likely inflows.
  • The rupee changed hands at 70.53 to a dollar against 70.4850 at the previous close. The currency opened at 70.59, and fell to the day’s low of 70.67.

Indian Equities:-

  • Indian shares rose on Wednesday, with renewed interest in midcap stocks, as tensions with Pakistan appeared to be easing further, boding well for the markets weeks ahead of parliament elections.
  • The broader NSE index was up 0.45% at 11,037.10 while the benchmark BSE index was 0.45% higher at 36,605.78.

Global Markets:-

  • Asian markets finished mixed as of the most recent closing prices. The Shanghai Composite gained 1.57% and the Hang Seng rose 0.26%. The Nikkei 225 lost 0.60%.
  • European markets are mixed to lower. Shares in Germany are off as the DAX drops 0.38%. The CAC 40 is down 0.17% while the FTSE 100 in London is unchanged.
  • The benchmark Brent crude oil contract was trading 0.67% lower at $65.42 per barrel as forecast of higher output by two U.S. oil producers offset impact of production cut by the OPEC.
  • The dollar index was headed for a sixth straight session of gains, increasing 0.1% to trade at 96.85, after the Institute for Supply Management Non-manufacturing index for February rose more than expected and new single-family home sales climbed to a seven-month high in December.
  • Weakness in the euro also lifted the index. The losses on the common currency yesterday came ahead of tomorrow’s European Central Bank meeting, in which the monetary authority may hint at a delay in raising rates. It was last trading 0.1% lower at $1.1300.
  • Investors now await U.S. non-farm payroll data due on Mar. 8 for further cues.